Currency Unification Still Likely In Cuba, But Timeline Remains Foggy

  • Fitch believes that Cuba will likely unify its dual exchange rate system in the quarters ahead, given the economic costs imposed by the current system.

 

  • Exchange rate reform will provide tailwinds to growth over the long term, by making exports more competitive and reducing the complexity of pricing systems.

 

  • Fitch forecasts that unification will take place in 2019, though they acknowledge substantial risks to this view given the opacity of the Partido Comunista de Cuba (PCC) and concerns about the impact of the move on political stability.

(Source: Fitch)